Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. stocks fell in the quarter as investors considered the potential economic effects of tariffs and government funding cuts. Softer economic data also impacted stocks. The Russell 2000® Growth index ended the quarter with a loss of -11.12%. Additionally, the Wasatch Small Cap Growth strategy declined and lagged the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as Dutch Bros Inc. (NYSE:BROS). Dutch Bros Inc. (NYSE:BROS) operates and franchises drive-thru shops. The one-month return of Dutch Bros Inc. (NYSE:BROS) was -11.02%, and its shares gained 93.14% of their value over the last 52 weeks. On April 17, 2025, Dutch Bros Inc. (NYSE:BROS) stock closed at $58.27 per share with a market capitalization of $9.505 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Dutch Bros Inc. (NYSE:BROS) in its Q1 2025 investor letter:
“Another large contributor was Dutch Bros Inc. (NYSE:BROS), a drive-through coffee company in the U.S. that serves customizable hot, iced and blended beverages. Strong fundamentals continue to lift the stock higher. In February, the company announced quarterly revenue and earnings growth that exceeded expectations and announced plans to open more than 150 new stores in 2025. While we like the concept of Dutch Bros.’ stores, the stock has risen substantially in the short time we owned it, and we trimmed the position after those gains.”
A closeup of a customer tasting a freshly-made cold brew coffee product from the company’s shop.
Dutch Bros Inc. (NYSE:BROS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Dutch Bros Inc. (NYSE:BROS) at the end of the fourth quarter which was 37 in the previous quarter. Dutch Bros Inc.’s (NYSE:BROS) fourth quarter revenue was $343 million, an increase of 35% from Q4 2023. While we acknowledge the potential of Dutch Bros Inc. (NYSE:BROS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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